X-FAB Silicon Foundries and MEMS Foundry Itzehoe GmbH (MFI) are combining their MEMS foundry capabilities after X-FAB acquired a 25.5-percent shareholding of MFI, which is a contract manufacturer for MEMS and spin-off from Fraunhofer Institute for Silicon Technology (ISIT). X-FAB noted that last year it generated US$12 million from MEMS fabrication and has manufactured approximately 1 billion MEMS devices to date.

“We see a huge business potential in this cooperation,” remarked Hans-Jürgen Straub, CEO of X-FAB. “With such excellent partners as the MFI and Fraunhofer, we form a powerful force offering a unique set of MEMS technologies. With strong demand and our combined resources, we aim to increase our annual MEMS revenue to more than US$50 million in the next five years.”

“Commercialization of MEMS and creation of new market opportunities are key targets for Fraunhofer ISIT,” noted Prof. Wolfgang Benecke, ISIT's managing director. “The alliance of MFI and X-FAB, along with the state-of-art 8-inch R&D capabilities of Fraunhofer ISIT on-site, creates boundless new possibilities in MEMS. Our partnership is unique worldwide.”

X-FAB also noted that it has the option to become the majority shareholder of MFI at a later date.